- Pure Hydrogen to secure a 19.99% shareholding of the issued capital in Botala Energy Ltd (Botala) as part of a sale and purchase agreement
- Botala will acquire an additional 21% working interest in the Serowe CBM Project with Pure Hydrogen retaining a 30% free carried interest
- Pure Hydrogen shareholders will be given an exclusive priority offer to participate in Botala’s IPO as part of the deal
- Serowe CBM Project had increased its 2C Gas Resources recently to 317.6 BCF and Prospective Resources of 8.008 Tcf (100% share)1
- Botala intends to undertake a CBM pilot programme to demonstrate commercial gas flows at the project and a further appraisal programme to convert CBM resources to reserves, subject to a successful IPO.
Sydney: Australian clean energy Company Pure Hydrogen Corporation Limited (ASX: PH2 or ‘Pure Hydrogen’) is pleased to advise that it will, subject to completion of the Pure Hydrogen Sale Agreement occurring, be a substantial shareholder in Botala Energy Ltd (Botala) following Botala lodging its prospectus on 16 May 2022 and subject to Botala being admitted to ASX.
As first announced on 15 July 2021, Pure Hydrogen will own 19.99% of Botala on Botala’s admission, and, in exchange, Botala will receive an additional 21% working interest in the Serowe CBM Project to increase its aggregate interest in the project to 70%. Pure Hydrogen will retain its working interest of 30% in the Serowe CBM Project, which will continue to be free carried until Botala has spent a total of $6.1 million (of which $3.8 million is currently outstanding) on exploration and development on the Serowe CBM Project on or before 8 December 2023.
Pure Hydrogen shareholders will have the opportunity to participate in the IPO and will be offered priority access rights. Under the Priority Offer, a total of up to 15,000,000 Shares, priced at A$0.20 each (being up to an aggregate issue price of $3,000,000 (before costs) has been set aside exclusively for Pure Hydrogen shareholders. Below is the link to the prospectus.
The priority offer letter, signed by the Chairman of Pure Hydrogen, Mr Ron Prefontaine is attached to this announcement, which details the offer and dates relating to the offer. The shares to be issued to Pure Hydrogen under the agreement are likely to be escrowed for 2 years, although this is not yet determined.
Botala’s main undertaking is CBM exploration and development (specifically the Serowe CBM Project), but the Company is cognisant of the global transition to renewable energy and, accordingly, is actively undertaking early-stage research and development activities to assess the viability of developing renewable energy projects complementary to its main undertaking. Accordingly, the collaboration between Pure Hydrogen and Botala Energy will see the two companies drive forward their aim to produce reliable and dispatchable energy from renewables in Southern Africa.
Serowe Hydrogen – Potential 50/50 Hydrogen Joint Venture (JV) focused on Botswana
Pure and Botala has signed a new extension until 31 December 2022 to the Serowe Hydrogen MOU already in place under which Pure Hydrogen and Botala are investigating the establishment of renewable energy businesses targeting power generation. Hydrogen and solar projects and other green energy projects are being considered with the JV drawing on Pure Hydrogen’s established partnerships and operations in the Australian hydrogen sector. Pure Hydrogen will provide hydrogen support for the Project which will be eligible for several financing programs that apply in country.
Managing Director of Pure Hydrogen Scott Brown said: “We are excited about the collaboration between Pure Hydrogen and Botala Energy and look forward to Botala being admitted to ASX and continuing to grow the Serowe CBM Project. This provides many more options to advance the development of Serowe CBM Project and explore potential hydrogen projects in Botswana. This is also a great opportunity for Pure Hydrogen shareholders to access direct exposure to this project in Botswana.”
Kris Martinick CEO of Botala Energy “We are delighted to welcome existing PH2 shareholders to join Botala as we seek admission to the ASX while continuing to strengthen the working relationship between our two companies. This opportunity represents a great step forward in the development of the Serowe CBM Project with an exciting focus on further exploration and appraisal of the field providing growth potential for both companies.” This announcement is authorised by the Managing Director.
Pure Hydrogen makes the following disclosures that:
- no specific project has been identified as a result of the MOU with Botala.
- if a Hydrogen production facility is established in Botswanna it may require significant capital expenditure but neither Pure Hydrogen nor its partner Botala have attempted to quantify this expenditure at this time.
- planning and construction of the Hydrogen facilities for storage, load out and production has not yet been determined.
This announcement is authorised by the Managing Director
About Pure Hydrogen Corporation Limited
Pure Hydrogen is an Australian focused Clean Energy Company with Hydrogen, Gas and mobility businesses including a strategic interest in H2X Global Limited. The Company has 5 Hydrogen projects under development and 3 gas projects, Windorah Gas Project in the Cooper Basin, Australia’s most prolific onshore producing petroleum basin, Project Venus CSG in the Surat Basin in Queensland and the Serowe Project CSG in Botswana.
About Botana Energy Ltd
Botala Energy Ltd is an Australian CBM exploration and development company focused on the
Serowe CBM Project in Botswana (and related early-stage renewable energy research and development). Botala aims to be a diversified energy company producing reliable and dispatchable energy from CBM and, potentially, renewables to:
- Meet Botswana’s domestic energy requirements
- Export energy to neighbouring countries
- Attract industries wanting reliable, renewable energy For further detail www.botalaenergy.com.au
For further details see the Company’s announcement 12 April 2022